Opening Bell: KSE-100 Index surges 1,150pts after IMF loan deal

July 15, 2024 (MLN): Pakistan stocks opened on a bullish note on Monday after the nation secured another $7 billion loan deal from the International Monetary Fund over the weekend.

The benchmark KSE-100 Index jumped 1,154.03 points or 1.44% to 81,098.1 by 09:35am.

The successful achievement of a staff-level agreement with the IMF will create a favorable environment for financial inflows from other multilateral institutions, bilateral partners, and friendly countries, according to Arif Habib Limited (AHL).

These inflows are expected to contribute to an increase in the country's foreign exchange (FX) reserves and help alleviate any external pressures, AHL said in a report.

Additionally, the program will provide much-needed clarity and certainty regarding the economic roadmap alongside structural reforms for the next three years, it added.

KSE-100 index was supported by Commercial Banks (+381.31pts), Oil & Gas Exploration Companies (+155.95pts), Fertilizer (+115.64pts), Power Generation & Distribution (+103.91pts), and Cement (+85.49pts).

Companies that added points to the index were HUBC (+74.32pts), MEBL (+69.14pts), OGDC (+67.71pts), MCB (+67.10pts), and UBL (+61.14pts).

In the broader market, the All-Share index was at 51,762.48 with a net gain of 756.13 points or 1.48%.

To note, the KSE-100 has gained 2,653 points or 3.38% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 18,647 points, equivalent to 29.86%.

The new bailout is aimed at capitalizing on the hard-won macroeconomic stability achieved over the past year, the IMF said in a statement.

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